MedPay Insurance in Texas Automobile Insurance Policies
Medpay Insurance: Is an insurance coverage that sometimes is offered to "replace" PIP by auto insurance companies. Unfortunately the coverage is not as extensive. Medpay Insurance typically is sold for $2500.00 limits. It only covers past medical bills. It is also subrogateable, which means it will affect your settlement negotiations with the at-fault party's insurance company, because your insurance company will attempt to subrogate and get mixed up in the negotiations in its attempts to recoup the money the paid. This can complicate your negotiations with the other side.
PIP is Personal Injury Protection - your liability insurance company is supposed to offer you this coverage when you take out your policy. You can reject it if you wish, but it must be offered. If an insurance company claims that you have no PIP, they must have a written rejection (showing you were offered, but signed the rejection instead). If the insurance company does not have a written rejection, then there is coverage.
PIP typically has a limit of $2500.00 minimum. The auto insurer can sell you as much as they are willing to sell you - so the limits can be as high as you wish to purchase. It is unusual to see PIP limits higher than $10,000.00 in Texas. It is much more common to see either $2500 PIP limits, or none at all (the insured signed a written rejection).
PIP is unique in the number of things it covers. PIP covers past medical and funeral bills from a any motor vehicle accident a covered person is involved in. It also covers lost wages up to 80%. It covers household services as well - such as if you were disabled and unable to care for your family, it would cover reasonable household and maintenance services (lawn mowing, cleaning service, etc.).
PIP is also unique in that it is not "subrogateable". Subrogation is an insurance term that in short means to collect. If an insurance company can "subrogate", this means it can collect against those parties who they think owe the claim to get their money back.